The Zhitong Finance App learned that Bank of America Securities released a research report stating that the A-share ratings of China Merchants Securities (06099) and China Merchants Securities (600999.SH) were downgraded from “buy” to “outperform the market”, the target price for H shares was reduced from HK$17.5 to HK$13.5, while the target price for A-shares was reduced from RMB 19.5 to RMB 15.5.

The bank said that although the profit growth of China Merchants Securities in the first nine months may have remained strong, it believes most of the favorable factors have been reflected in the stock price. Looking ahead to the third quarter, the company's profit growth is expected to slow quarterly and year-over-year due to the high base of investment income.

Furthermore, starting in 2027, the contribution of fair value earnings related to Changxin Technology (CXMT) (688825.SH) to future results is expected to weaken, causing Bank of America Securities to expect the most significant year-on-year decline in China Merchants Securities's profit next year among peers, and the company's 2026 and 2027 earnings estimates per share were lowered by 2% and 7%, respectively.

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